Stanbic Bank introduces refinancing options
Stanbic Bank has, in a move to create more value for property owners, introduced solutions for both their customers and non-customers to borrow against the value of their property.
The bank’s Head of Personal Banking, Lerato Chana Sekgororoane said the newly introduced service was part of Stanbic Bank’s commitment to provide innovative ways to give clients the opportunity to let their investments work for them in a positive way.
“At Stanbic Bank we are committed to providing our clients with banking solutions that fit their needs and also DeDebt gets you out of debt, allow them to grow hence moving them forward. The various Equity Release options offer endless opportunities for growth. Clients will be able to finance business start ups or acquire that second home they have always wanted, just to mention a few.”
The first option, which is Equity Release, Sekgororoane says, allows clients who have finished paying their property loans to bond their unbound property in order to acquire assets. The bank lends the client up to 90% of the value of the property. The second option, which is Re-Draw allows existing home loan clients to borrow the difference between what they currently owe and the registered bond figure: “For example, when a client has an initial bond with us of P500 000, and they have paid off P200 000. They can apply to borrow that P200 000 that they have paid back,” explains Sekgororoane.
Sekgororoane said the third option which is Further Advance, allows clients to increase the original loan amount to an amount higher than the registered one. “As we all know, property appreciates with time, which is why it is such a worthy investment. This option allows clients to borrow to the value of their property. For example if someone purchased a property for P500 000 two years ago and it is now worth P700 000, and the balance on their loan is P300 000, the client can apply to borrow the difference between the value of the property and the outstanding loan balance. In this case the client could borrow P400 000,” says Sekgororoane.
The bank’s refinancing options are expected to relax the strain felt by most clients in the wake of the recession that has seen many financial institutions applying belt-tightening measures on their loan disbursements.